Press Release: FelCor Lodging Trust Incorporated
October 19, 1999
IRVING, TX -- FelCor Lodging Trust Incorporated (NYSE: FCH) and Starwood Hotels & Resorts (NYSE: HOT) yesterday
jointly announced the acquisition of the 437-room Sheraton® Premier Hotel in Tysons Corner, Va., a suburb of
Washington, DC, for a purchase price of $52.9 million. The two companies, which have been working together on this
acquisition for 10 months, have formed a 50/50 joint venture to purchase the 13-year old hotel from SRS Properties,
a Virginia Limited Partnership. The purchase price consisted of approximately $52.8 million in cash and 3,571 FelCor
Operating Partnership Units valued at $28 per unit. Sheraton Hotels will manage the hotel under a 20-year management
agreement replacing ARLTEC, the prior manager. This transaction is the second joint venture between FelCor and
Starwood.
The 24-story Sheraton Premiere hotel is currently undergoing an extensive $5.3 million renovation, started by the
prior owner. The renovation is expected to be completed in the second quarter of 2000.
``The purchase of this hotel was completed at a cost of approximately $121,000 per room, which represents a price
well below replacement cost,'' said Thomas J. Corcoran, Jr., FelCor's President and CEO. ``We are excited by the
potential of this hotel and the opportunity to further strengthen our alliance with our brand owner/manager Starwood.''
``We are pleased to partner with FelCor on another hotel project,'' said Juergen Bartels, CEO-Hotel Group of Starwood.
``The Sheraton Premier is a terrific hotel in a great market and we were able to purchase it at a very attractive
price. It joins a number of Starwood-owned properties in the Washington, D.C. area giving us a significant presence
in this important urban market.''
Including this hotel, FelCor owns 12 Starwood-branded hotels, (10 Sheraton hotels, one Four Points® by Sheraton,
and one Westin® hotel) representing more than 3,000 rooms and suites. The hotels are located in geographically
diverse markets including Phoenix, Ariz.; Atlanta, Ga. (2); Philadelphia, Pa.; Dallas, Texas (2); Burlington, Vt.;
Ft. Lauderdale, Fla.; Lexington, Ky., Leominster, Mass., and Rosemont, Ill.
The Sheraton Premiere Tysons Corner hotel is located in rapidly growing Fairfax County, Virginia, at the intersection
of Route 7 and Dulles Toll Road. This hotel is 20 minutes from downtown Washington and 10 minutes from Dulles International
Airport. The hotel features 437 luxury guest rooms and suites; more than 35,000 square feet of meeting space; Ashgrove
and Baron's restaurants; First Impressions, the hotel's lobby bar; a business center; fitness and recreational
facilities, which include both indoor and outdoor pools, and three racquetball courts.
FelCor Lodging Trust is one of the nation's largest hotel real estate investment trusts (REITs). FelCor's hotel
portfolio consists of 188 hotels and nearly 50,000 rooms and suites and is concentrated primarily in the upscale
and full-service segments. FelCor is the owner of the largest number of Embassy Suites®, Crowne Plaza®,
Holiday Inn® and independently owned Doubletree®-branded hotels. Other leading hotel brands under which
FelCor's hotels are operated include Sheraton Suites®, Sheraton and Westin. FelCor has a current market capitalization
of approximately $3.2 billion. Additional information can be found on the Company's website at www.felcor.com.
Starwood, through its subsidiaries, owns, manages and franchises hotels under its St. Regis®/Luxury Collection,
Westin, Sheraton, Four Points and W® brands. Starwood is one of the leading hotel and leisure companies in
the world with approximately 700 hotels in 76 countries and 130,000 employees at its owned and managed properties.
With the exception of historical information, the matters discussed in this news release include ``forward looking
statements'' within the meaning of the federal securities laws and are qualified by cautionary statements contained
herein and in FelCor's filings with the Securities and Exchange Commission.
SOURCE: FelCor Lodging Trust Incorporated